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8/8/2019 IT’ IN RETAIL CHAIN
http://slidepdf.com/reader/full/it-in-retail-chain 1/22
µIT¶ IN RETAIL CHAIN
PRIYADHARSHINI.R
MOHAN KUMAR.G.V
8/8/2019 IT’ IN RETAIL CHAIN
http://slidepdf.com/reader/full/it-in-retail-chain 2/22
With the increase in globalization of retailers both in terms of their points-of -sale, as well as their points-of -supply, the r ole of Information Technology (IT) in the retail sector has increased considerablyand plays an increasingly important r ole in
managing the complexity of retailoperations.
RETAIL CHAIN Vs µIT¶
8/8/2019 IT’ IN RETAIL CHAIN
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RETAIL CHAIN
Chain of stores which sales goods on
merchandise f r om a f ixed location.
Distribution of goods to these chain of
stores are centralized.
Wall Mart is the leader in the retail chain
sector acr oss the globe.
8/8/2019 IT’ IN RETAIL CHAIN
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CURRENT SCENARIO All over the wor ld, retailing is under going a
pr ocess of evolution and is poised to under godramatic transformation.
The top 200 retailers alone contribute for 30% of wor ldwide demand.
The average gr owth of the sector seems to be in an upward trend.
Retail sales are generally driven by people¶s ability and willingness to buy goods and ser vices.
8/8/2019 IT’ IN RETAIL CHAIN
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FUNCTIONS/OPERATIONS IN A
RETAIL CHAIN
Buying goods f r om wholesalers.
Segregating and standardization of pr oducts,
followed by inventor y contr ol.
Selling the goods to meet customer ¶s needs.
8/8/2019 IT’ IN RETAIL CHAIN
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DIFF
ICUTIESF
ACED Complexity of retail operations
Pr oduct complexity.
Supply chain management.
Scale complexity.
Pr ocess complexity.
8/8/2019 IT’ IN RETAIL CHAIN
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NEED FOR IT IN RETAIL Aggregate and analyze the customer data to enhance
diff erentiation
Increase a company¶s ability to respond to a rapidly
changing market place thr ough enhanced flexibility and speed.
To operate eff ectively, retailers need to have one system acr oss stores sometimes acr oss national borders toensure the most eff ective use of stock and to support
optimized business pr ocess. Systematic implementation of Information Technology to
impr ove the inventor y management can make a ver y bigdiff erence in the present time
8/8/2019 IT’ IN RETAIL CHAIN
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RETAILER¶S VIEW TOWARDS µIT¶ As the hype ar ound technology decreases,
retailers are seeing clear ly that
technology¶s r ole is one of an enabler for speeding up of pr ocess and deliveringcost savings.
IT has become a key business-driver in today's business and so retailers are tr yingto reap in the benef its of technology.
8/8/2019 IT’ IN RETAIL CHAIN
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AREAS FOR µIT¶ IN RETAILING Inventory tracking and management:
Electr onic Cash Registers (EPoS)
With this system, a bar code on a pr oduct is scanned during its sale and the computer removes the scanned item f r om stock f igures.
Af ter which the bill is printed and the cash draw
opens for depositing the cash in it. (Used for Electr onic point of sale (EPoS) - for inventor ytracking and management).
8/8/2019 IT’ IN RETAIL CHAIN
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AREAS FOR µIT¶ IN RETAILING Inventory and supply chain management
Radio Frequency Identif ication Device: RFID
is a system which converts the radio waves,
reflected back f r om the RFID tag, into digital
information which can be used for eff icient
inventor y management and impr oving supplychain management.
8/8/2019 IT’ IN RETAIL CHAIN
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Shopping experience with RFID Imagine a shopping cart equipped with a scanner and a
touch-screen computer that acts as a virtual personalshopper.
As you scan items and put them in your cart, the computer off ers information about each pr oduct and suggests complementar y items
The computer keeps a list of the items in your cart with a running total so you know exactly how much you're
spending. When f inished shopping, you head to a self -checkout
stand or to a cashier.
Because your items are already totaled and bagged, the wait time is minimal.
All you have to do is pay
8/8/2019 IT’ IN RETAIL CHAIN
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Importance of RFID RFID is helping retailers ar ound the wor ld impr ove
customer satisf action and increase sales
It is transforming the retail industr y by off ering retailers
real-time visibility into inventor y and pr oduct movement to impr ove store pr oductivity and loss prevention.
Tracking capabilities also make it easier to predict pr oduct demand.
RFID-tagged items off er store-to-store visibility, so items
can be located immediately with the touch of a button. RFID can enable your marketing and customer ser vice
teams to identify customers, call up account histories, and pr ovide value-added ser vices to help create a personalized shopping experience
8/8/2019 IT’ IN RETAIL CHAIN
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AREAS FOR µIT¶ IN RETAILING Inventory management at point of sale
Quick Response Deliver y System:
QRDS helps to commute the information
for quick (point of sale) replenishment. It
helps reduce the lead time for receiving
merchandise.
8/8/2019 IT’ IN RETAIL CHAIN
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AREAS FOR µIT¶ IN RETAILING Purchasing and selling activities
Electr onic data Interchange:
EDI enables retailers to integrate their purchasing / selling activities with their
suppliers. It is the structured transmission
of data between or ganizations byelectr onic means.
8/8/2019 IT’ IN RETAIL CHAIN
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Web EDI The internet uses its own communication
pr otocols to ensure that EDI documents
are transmitted securely.
Web EDI allows the company to interact
with its suppliers in diff erent regions
without the worr y of implementing a complex EDI inf rastructure.
8/8/2019 IT’ IN RETAIL CHAIN
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AREAS FOR µIT¶ IN RETAILING Resource planning
Systems, Application and Pr oduct (SAP)
SAP application is an integrated resource
planning that tar gets the requirements of mid-
sized and lar ge retail chains. It allows open
communication within and between all company
f unctions.
8/8/2019 IT’ IN RETAIL CHAIN
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FUTURE OF µIT¶ IN RETAILING The application of various techniques of IT is to become
f ull fledged in the near f uture due the ease in the operations of retailing.
Higher and upgraded version of the existing techniques are to be evolved thereby making retailing pr ocess easier.
Some of the new up-coming techniques of Information Technology.
Digital Signage Near Field Communication (NFC)
Self Ser vice Check Out
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µIT¶ MANAGEMENT CHALLENGES
Transparency and tracking customer data.
Synchr onization of global data.
Integrating systems f r om manuf acture thr ough/to customers.
IT cost and per formance of retail chain
under pressure. High maintenance costs.